Louisiana Senate Bill SB78

Louisiana 2015 Regular Session

• Introduced: 3/31/15
• Refer: 3/31/15
• Refer: 4/13/15
• Report Pass: 5/18/15
• Refer: 5/19/15
• Report Pass: 5/25/15

Caption

Provides the information to be submitted to the legislative fiscal information for the review of instruments relative to tax exemptions, exclusions, deductions, and credits. (RE SEE FISC NOTE GF EX)

Impact

If enacted, SB 78 could significantly alter how tax policy is developed and reviewed in Louisiana. The bill sets a precedent for requiring detailed economic analyses that legislators must consider, thereby encouraging a more data-driven approach to tax legislation. By requiring transparency regarding the net benefits of tax exemptions, the bill aims to promote fiscal responsibility and ensure that the state does not forfeit substantial revenue without clear justification of the economic benefits. This could potentially lead to more rigorous scrutiny of tax exemptions that have traditionally been passed with less oversight.

Summary

Senate Bill 78 aims to enhance the legislative review process for tax exemptions, deductions, and credits by establishing specific requirements for the submission of economic impact information associated with these tax instruments. Among its stipulations, the bill mandates that authors of tax exemption instruments submit an 'Exemption Explanatory Note' that outlines the estimated decrease in revenue over five years, the state's revenue loss ratio, and the anticipated impact on household earnings and employment. This structured approach is designed to provide lawmakers with a comprehensive understanding of the fiscal implications of tax exemptions before approving them.

Sentiment

General sentiment surrounding SB 78 appears to be cautiously positive. Proponents argue that by adding a layer of accountability for tax exemptions, the bill will ultimately benefit the state's economic health and support sustainable fiscal policy. Critics, however, may view it as a potential bureaucratic hurdle that could delay or complicate the approval of necessary tax relief measures, thus sparking debate on balancing fiscal scrutiny with the need for timely legislative action.

Contention

One notable point of contention among legislators may involve the concerns over the administrative burden the bill imposes on the legislative process. While proponents believe that a careful analysis will ensure sound public policy, opponents might argue that the additional steps required for analyzing tax exemptions could lead to inefficiencies or delays in the legislative process. Furthermore, there is the underlying tension between the need for economic incentives to stimulate growth and the imperative to maintain state revenue integrity.